Headline Earnings Per Share (HEPS) is up 77%.
Earnings Per Share (EPS) up 76%
Tangible NAV up by 8%
Group Revenue Up By 27%:
South Africa’s Top Empowerment Grouping, Sekunjalo Investments Limited today reported highly impressive results in bottom line earnings, cash flow and net asset value to end February 2013.
Sekunjalo Investments Limited is the Financial Mail/Empowerdex’s Top Ranked Empowerment Company and its performance validates the strategy of growing its underlying businesses.
The Executive Chairman of Sekunjalo Investments Limited, Dr Iqbal Survé said he is delighted by the performance of the listed subsidiary of the Sekunjalo Investment Holding Company. Dr Survé said that the strategies implemented by the board are beginning to bear fruit and the strong growth in earnings and NAV as well as the good cash flows indicates that the Group is beginning to generate significant value for its shareholders.
Dr Survé has indicated that he is delighted that the fishing and technology and communications subsidiaries, as well as the investments in Pioneer Foods and British Telecom all continue to perform strongly.
Sekunjalo Investments strategy of growing NAV by investing its surplus capital in its underlying businesses is reaping the benefits of this approach, and the board and the company is looking forward to a strong performance in the years ahead.
Dr Survé has mentioned that the performance has to be applauded, as traditionally Sekunjalo’s results for the first half of the year is not as good as the second half of the year due to the seasonal nature of some of the businesses in the Group.
The Group, as an investment holding company, has set its objective to increase net asset value (NAV) by improving operational performance of its underlying businesses and investments, and has done so successfully for the period under review.
Group revenue has grown by 27% from the prior interim period due to the strong operational performance of the underlying businesses. The Group’s gross profit percentage is in line with expectations with improved margins and efficiencies, particularly from the IT and fishing operations.
Profit before taxation for the period has increased significantly to R24 million as compared to the prior period profit of R19 million, driven mainly by the subsidiaries organic growth and strategies implemented over the past few years.
Earnings and headline earnings per share have increased by 76% and 77% respectively as a result of the operational performance of the subsidiaries.
The Group’s asset base has increased by R114 million to R898 million from R783 million over the comparative period under review.
Net asset value (NAV) per share grew to 93.79c from 88.70c in the prior interim period, while tangible NAV per share grew to 83.83c from 77.68c for the same period.
Sekunjalo said that this performance has resulted in the improvement in cash generation from operations which compares well with the prior interim period. The Group is pleased to announce that the business strategies previously implemented are showing the expected improved results for the six month period under review.
Sekunjalo’s CEO, Khalid Abdulla said that due to the re-investment into the organic growth of the Information Technology Communication Group (Sekunjalo TSG), the division is performing above expectation with operating profits of R26m for the period. This was achieved through the implementation and roll out of the long term contracts secured during the prior financial years.
Sekunjalo TSG’s operations continue to perform well with revenue from operations increasing by 42% to reflect revenue of R104 million as compared to R73 million during the prior period. The Information Technology Communication Group also performed above target and generated a positive cash flow.
Premier Fishing generated a profit from operations for the period under review. Premier Fishing has steadily maintained its performance with the major contribution coming from the south coast and west coast rock lobster divisions. The fishing sector generally performs better in the second half of the year due to the seasonal nature of the industry. The Environmental Impact Analysis (EIA process was progressing well and this will pave the way for the reopening of the pelagic fish processing plant in Saldanha Bay.
The healthcare division’s core dermatological range of products in the pharmaceutical division is showing a good improvement in performance, despite significant competition from generic equivalents.
The Group’s non-controlling interests in large multinational companies, British Telecom Communication Services South Africa and Pioneer Foods Group have also strengthened the Group’s financial position.
The ICT and fishing divisions have built a strong platform for further organic growth and the Group is well positioned to increase its investments further through acquisition.
For further comment please contact:
Khalid Abdulla – 082 892 7889
Cherie Hendricks – 021-427 1400 or 083 718 4493